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Biotech / Medical : MEDX ... anybody following? -- Ignore unavailable to you. Want to Upgrade?

To: nigel bates who wrote (634)	12/12/2002 12:11:22 PM
From: Icebrg	Respond to of 2240

Bothell biotech gets a reprieve Deal with East Coast firm keeps the doors open By Eric Fetters Herald Writer BOTHELL -- Northwest Biotherapeutics Inc. has cash in the bank again and will survive into next year after agreeing to sell development rights for several potential cancer treatments. Under the agreement with Medarex Inc. of Princeton, N.J., the Bothell-based company has already received $1 million and will get another $2 million during the next two months, said Daniel Wilds, chief executive officer of Northwest Biotherapeutics. That money should be enough to carry the biotechnology company through the end of 2003, Wilds said. Northwest Biotherapeutics also will get future royalty payments and some intellectual property rights. "We're very excited about what the future holds for us," he said. Last month, Northwest Biotherapeutics warned investors it would shut down by Dec. 31 without a partnership agreement or new investment dollars. This is not Medarex's first involvement with Northwest Biotherapeutics. In 2001, Medarex agreed to help Northwest Biotherapeutics develop treatments based on human antibodies. Under the new deal, Medarex is taking over full ownership of those programs. That includes MDX-070, a human antibody that may target prostate tumor cells, according to preclinical studies. Northwest Biotherapeutics gets more than just money out of the complicated agreement, however. It will reacquire from Medarex all development and commercialization rights for five other potential treatments, which previously had been granted to the New Jersey company. One of the reacquired programs is looking into an antibody found in multiple cancers and to be involved in tumor growth and metastasis. Wilds said that antibody, CXCR4, shows "outstanding" potential. "The scientific and potential commercial and medical importance of the targets being reacquired by Northwest Biotherapeutics is just beginning to be recognized," said Alton Boynton, chief operating and scientific officer for the Bothell company. "One of our strategic initiatives for 2003 will be to further establish the value of these targets and to position them for future clinical trials." In return for selling those back, Medarex will receive 2 million shares of Northwest Biotherapeutics stock and the option to purchase an additional 800,000 shares. Even with its new agreement, Northwest Biotherapeutics will remain a much smaller company than it was a year ago when it launched its initial public offering of stock. After several rounds of layoffs, the company now has 18 employees, 12 of whom are scientists, Wilds said. He said there are no more layoffs planned at this time. Prior to its cash crisis, the company had two potential cancer drugs in late-stage clinical trials, which were suspended in October. There are no plans to revive expensive clinical trials on those drug candidates anytime soon, Wilds said. Instead, the company will focus in 2003 on developing antibody and dendritic cell therapies and establishing more strategic partnerships to further develop the company's laboratory findings. The company's stock still faces a possible delisting from the Nasdaq market in the new year. Northwest Biotherapeutics is considering being listed on the Over the Counter Bulletin Board until it can meet Nasdaq's minimum requirements again. Wilds said there have been no serious discussions about converting into a private company. After Wednesday's agreement with Medarex was announced, the company's share price rose 15 cents, or more than 52 percent, to end the day at 44 cents. You can call Herald Writer Eric Fetters at 425-339-3453 or send e-mail to fetters@heraldnet.com. heraldnet.com